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Please answer all the questions. I also need personal tutoring. Please c on tact me. 1. On 1 julx 2018, Coolio Ltd acquired all the
Please answer all the questions. I also need personal tutoring. Please c on tact me.
1. On 1 julx 2018, Coolio Ltd acquired all the issued capital for Elena Ltd for a cash payment of 55000 when the equity for Elena Ltd was: Share Capital: $26,000 Retained Earnings: $5,000 Revaluation Surplus: $4,000 At 1 July 2018, all assets of Elena Ltd were fairly valued. Directors determined that goodwill would be impaired by 10% in 2019, 2020, and 2021 on its original value. Assume that there are no intra-group transactions or deferred tax consequences from 1 July 2018 to 30 June 2021. The financial statements at 30 June 2021 are shown on the next page in the partially completed consolidation worksheet. Tax rate is 30%. Reporting date is 30 June. Coolio Ltd has investment in other entities. Required: a) Prepare an acquisition analysis and determine the amount of goodwill or gain on bargain purchase at acquisition. Show all workings. b) Prepare the acquisition elimination journal entries for consolidation as at 30 june, 2021. (Number consolidation elimination/adjusting journal entries by 1,2,3..etc. Narrations are required. c) Complete the consolidation worksheet of Coolio Ltd group at 30 June 2021. d) The following account balances existed at 30 June 2022: Coolio Ltd: Dividend Revenue $4,900 and dividend receivable $1,500 Elena Ltd: Dividend paid $3,600 and dividend payable $nil. 0 . Prepare the consolidation elimination journal entry for intra-group dividend for the year ending 30 June 2022. Narrations are required. e) Elena Ltd sold an item of plant to Coolio Ltd on 1 July 2021 for $3,300. The asset had cost Elena Ltd $4,000 when purchased on 1 July 2020. When originally acquired the useful life of the plant was assessed at 4 years with no residual value and this estimate has remained unchanged. Straight-line depreciation was used by the group. Prepare the consolidation elimination journal entries for the intra-group sales of plant for the year ending 30 June 2022. Narrations are required. f) During the year ending 30 June 2022, intra-group sales of inventory between Coolio Ldt and Elena Ltd were $3,500 of which the following amounts of unrealized profit were in inventory: at the beginning of the year $500; at the end of the year $1,000 Prepare the consolidation elimination journal entries for intra-group sales of inventory for the year ending 30 June 2022. Narrations are requiredStep by Step Solution
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